Pension System Chief Says He Will Resign

April 28, 1995|By Suzy Frisch, Tribune Staff Writer.

CHAMPAIGN — With Gov. Jim Edgar declining to support him, Dennis Spice told the board of the beleaguered State Universities Retirement System on Thursday that he would resign as the pension plan's executive director.

After an emergency two-hour closed-door meeting of the plan's board, Spice said he asked the board to put him on administrative leave for 60 days. He said he would resign on "terms to be negotiated."

But it was questionable whether Spice's decision to quit will satisfy state lawmakers, who not only criticized the executive director's arrogance and inconsistencies in legislative testimony but also attacked the board.

"The executive director certainly, in my opinion, was running amok," said Rep. Jay Hoffman (D-Collinsville). "But I think that's a reflection of a greater problem. I hope the board members understand we can't tolerate this misuse of funds."

Spice's announcement came two days after Edgar called on the pension plan's board to re-examine its executive director, who has held the post since 1991.

The $5.5 billion pension plan, which provides benefits to 26,000 retired higher education employees, had enjoyed relative obscurity until last month, when state Auditor Gen. Bill Holland sharply criticized perks given to Spice.

The pension plan has an unfunded liability of $4.1 billion, earned a 0.8 percent rate of return on its investments last year and is seeking $111 million in state taxpayer funding.

Holland's report revealed that, along with a base salary of $124,200, Spice received car and mileage allowances, an expense account, country club memberships, salary bonuses and a credit card that he used to charge the agency for gold jewelry, luggage, show tickets, expensive hotel rooms and meals for groups that included his wife.

Because of the audit, the club memberships, credit cards, expense account and mileage reimbursement were eliminated. Spice also reimbursed the system for $3,625 in questionable items.

But Spice told lawmakers contradictory stories about the fate of three 14-carat gold tie bars, costing $1,271 and originally charged to the agency. More recently, he failed to disclose to lawmakers his $5,000 pay hike last month.